<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by rcarnes:
I have one rental property in Texas and will purchase another in the next few months. I am considering incorporating for liability and tax purposes as I add more properties. Which Corporate Style would be best for Rental Property, L.L.C., S., C., etc. Also how can I transer property I currently have into the corporation, would I have to sell it to the corporatation and go through closing? Is there a way to transfer ownership to the corporation in another way?
Thank You.<HR></BLOCKQUOTE>
I suggest you talk to a tax attorney with respect to your liability and tax questions. On a transfer of real estate from an indivdual to a corporation owned by the same indivdual, no formal escrow closing is needed. The attorney in most cases just files a Quit Claim deed to transfer title. If there is a mortgage on the property, be sure to check to see if the mortgage provisions contain a "due on sale" or "due on transfer clause".
Some mortgage documents have such a clause that allows the mortgage lender to call the entire loan due if there is a sale or transfer without the lenders' full consent and approval.
